Chapter 18 CVP Homework [The following information applies to the questions displayed below.] Widmer Watercraft's predetermined overhead rate for year 2015 is 200% of direct labor. Information on the company's production activities during May 2015 follows. a. Purchased raw materials on credit, $220,000. b. Materials requisitions record use of the following materials for the month. Job 136 Job 137 Job 138 Job 139 Job 140 $ 50,000 32,500 19,400 23,200 6,800 Total direct materials Indirect materials 131,900 20,000 Total materials used $ 151,900 c. Paid $16,000 cash to a computer consultant to reprogram factory equipment. d. Time tickets record use of the following labor for the month. These wages were paid in cash. Job 136 Job 137 Job 138 Job 139 Job 140 $ 12,100 10.700 37,700 39,000 3,600 Total direct labor Indirect labor 103,100 24,500 Total $127,600 e. Applied overhead to Jobs 136, 138, and 139. f. Transferred Jobs 136, 138, and 139 to Finished Goods. g. Sold Jobs 136 and 138 on credit at a total price of $540,000. h. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance). expired factory Insurance). Depreciation of factory building Depreciation of factory equipment Expired factory insurance Accrued property taxes payable $69,000 37,500 11,000 36,500 i. Applied overhead at month-end to the Work in Process Inventory account (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost. 11. value: 1.71 points Required: 1. Prepare a job cost sheet for each job worked on during the month. Job No. 136 Job No. 137 Job No. 138 Job No. 139 Job No. 140 Materials $ Labor Overhead 50,000 $ 12,100 24,200 86,300 $ 32,500 $ 10,700 21,600 64,800 $ 19,400 $ 37,700 76,200 133,300 $ 23,200 $ 39,000 78,800 141,000 $ 6,800 3,600 6,000 16,400 Total cost $ View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1 a. 220,000 Raw materials inventory Accounts payable 220,000 2 b. Work in process inventory Factory overhead Raw materials inventory 131,900 20,000 151,900 C. 6,000 16,000 Factory overhead Cash 16,000 4 d. Work in process inventory Factory overhead Cash 103,100 24,500 127,600 5 e. 177,600 Work in process inventory Factory overhead 177,600 6 f. Finished goods inventory Work in process inventory 7 g(1). Accounts receivable 540,000 Sales 540,000 c 8 g(2) Cost of goods sold Finished goods inventory 9 h. Factory overhead 154,000 3. Prepare T-accounts for each of the following general ledger accounts, each of which started the month with a zero balance: Raw Materials Inventory, Work in Process Inventory, Finished Goods Inventory, Factory Payroll, Factory Overhead, Cost of Goods Sold. Post the journal entries from Part 2 to the following T-accounts Raw Materials Inventory Work in Process Inventory End.bal. 0 End.bal. 0 Factory Overhead Finished Goods Inventory End.bal 0 End.bal. Cost of Goods Sold End.bal. 01 4. Prepare a report showing the total cost of each job in process and prove that the sum of their costs equals the Work in Process Inventory account balance. Prepare similar reports for Finished Goods Inventory and Cost of Goods Sold. Report of Job Costs Work in Process Inventory Balance 0 Finished Goods Inventory Balance 0 Cost of Goods Sold Balance $ 0 Chapter 18 CVP Homework [The following information applies to the questions displayed below.] Widmer Watercraft's predetermined overhead rate for year 2015 is 200% of direct labor. Information on the company's production activities during May 2015 follows. a. Purchased raw materials on credit, $220,000. b. Materials requisitions record use of the following materials for the month. Job 136 Job 137 Job 138 Job 139 Job 140 $ 50,000 32,500 19,400 23,200 6,800 Total direct materials Indirect materials 131,900 20,000 Total materials used $ 151,900 c. Paid $16,000 cash to a computer consultant to reprogram factory equipment. d. Time tickets record use of the following labor for the month. These wages were paid in cash. Job 136 Job 137 Job 138 Job 139 Job 140 $ 12,100 10.700 37,700 39,000 3,600 Total direct labor Indirect labor 103,100 24,500 Total $127,600 e. Applied overhead to Jobs 136, 138, and 139. f. Transferred Jobs 136, 138, and 139 to Finished Goods. g. Sold Jobs 136 and 138 on credit at a total price of $540,000. h. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance). expired factory Insurance). Depreciation of factory building Depreciation of factory equipment Expired factory insurance Accrued property taxes payable $69,000 37,500 11,000 36,500 i. Applied overhead at month-end to the Work in Process Inventory account (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost. 11. value: 1.71 points Required: 1. Prepare a job cost sheet for each job worked on during the month. Job No. 136 Job No. 137 Job No. 138 Job No. 139 Job No. 140 Materials $ Labor Overhead 50,000 $ 12,100 24,200 86,300 $ 32,500 $ 10,700 21,600 64,800 $ 19,400 $ 37,700 76,200 133,300 $ 23,200 $ 39,000 78,800 141,000 $ 6,800 3,600 6,000 16,400 Total cost $ View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1 a. 220,000 Raw materials inventory Accounts payable 220,000 2 b. Work in process inventory Factory overhead Raw materials inventory 131,900 20,000 151,900 C. 6,000 16,000 Factory overhead Cash 16,000 4 d. Work in process inventory Factory overhead Cash 103,100 24,500 127,600 5 e. 177,600 Work in process inventory Factory overhead 177,600 6 f. Finished goods inventory Work in process inventory 7 g(1). Accounts receivable 540,000 Sales 540,000 c 8 g(2) Cost of goods sold Finished goods inventory 9 h. Factory overhead 154,000 3. Prepare T-accounts for each of the following general ledger accounts, each of which started the month with a zero balance: Raw Materials Inventory, Work in Process Inventory, Finished Goods Inventory, Factory Payroll, Factory Overhead, Cost of Goods Sold. Post the journal entries from Part 2 to the following T-accounts Raw Materials Inventory Work in Process Inventory End.bal. 0 End.bal. 0 Factory Overhead Finished Goods Inventory End.bal 0 End.bal. Cost of Goods Sold End.bal. 01 4. Prepare a report showing the total cost of each job in process and prove that the sum of their costs equals the Work in Process Inventory account balance. Prepare similar reports for Finished Goods Inventory and Cost of Goods Sold. Report of Job Costs Work in Process Inventory Balance 0 Finished Goods Inventory Balance 0 Cost of Goods Sold Balance $ 0